LVR tinkering shows Reserve Bank not immune to lobbying, NZIER says

Tue, 10 Dec 2013

By Jonathan Underhill Dec. 10 (BusinessDesk) – The Reserve Bank’s exemption of new home building from low-equity mortgage limits, just two months after they were introduced, shows the central bank isn’t immune to lobbying and highlights the limitations of such policies, says the NZ Institute of Economic Research. The bank today amended its loan-to-value ratio speed limit policy, designed to limit the risk to the nation’s financial stability from rising house prices, after lobbying by groups such as the Registered Master Builders Federation,...

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